Bath & Body Works, Inc. (NYSE:BBWI) reported first-quarter results that came in ahead of Wall Street expectations, helping drive the retailer’s shares sharply higher in premarket trading even as overall sales continued to decline.
The home fragrance and personal care group posted adjusted earnings per share of $0.32, exceeding analyst forecasts of $0.29 by $0.03
Revenue reached $1.4 billion, ahead of consensus estimates of $1.36 billion, although sales were down 3% compared with the same quarter last year. Chief executive Daniel Heaf said the quarterly performance “exceeded guidance, but remain below the standard our brand is capable of delivering.” Shares initially climbed around 15% in premarket activity before settling to gains of approximately 4.4% following the earnings release, as investors welcomed the stronger-than-expected results. Heaf added that the company’s strategy to reinforce its key product categories and refresh the brand identity “are beginning to resonate with consumers.” For the second quarter, Bath & Body Works projected earnings of between $0.20 and $0.25 per share.
The midpoint of the forecast, at $0.225 per share, was broadly in line with analyst expectations of $0.20. The retailer expects second-quarter sales to decline between 3% and 5% from the $1.5 billion generated during the same period a year earlier. For the full fiscal year, Bath & Body Works maintained its adjusted earnings outlook of $2.40 to $2.65 per share.